DELIVERING DIVERSITY IN DISPUTE RESOLUTION
When it comes to diversity, the dispute resolution industry has been something of a closed shop. Though arbitration is used around the world, in a wide range of economic, social and cultural environments, the arbitration community itself has suffered from a lack of diversity among its members.
A 2021 report from the American Association for Justice shows that arbitrators at JAMS, the American Arbitration Association and the Financial Industry Regulatory Authority (FINRA), three of the largest arbitration forums in the US, are mostly male and overwhelmingly white. Female arbitrators make up less than a third of arbitrators employed by the three organisations, while less than one in five arbitrators identify as Asian, Black, Hispanic and races other than white.
‘White, pale and stale’ is more than just a pithy phrase: it is a reality. Arbitrators of different gender identities, racial and ethnic backgrounds, and sexual orientations need a seat at the table – and not as part of a box-ticking exercise. There are tangible benefits to diversity, including navigating nuances and understanding diverse viewpoints. According to a 2016 International Council for Commercial Arbitration (ICCA) report, a diverse tribunal may be better prepared, more task-oriented and more attentive to parties’ arguments than a non-diverse tribunal.
Though it can often be hard to quantify, there is a strong case for greater diversity in business in general. Considerable evidence suggests that diverse and inclusive organisations are likely to make better, bolder decisions. In addition to having a positive impact on creativity and social justice, according to McKinsey, a diverse workplace is also good for the bottom line. Companies with a diverse workforce are 35 percent more likely to experience greater financial returns than their respective non-diverse counterparts. Furthermore, according to Harvard Business Review, companies with greater diversity are 70 percent more likely to capture more markets. Diverse teams increase business performance and demonstrate more accurate group thinking.
Jul-Sep 2022 issue
Richard Summerfield